Focus on Global Opportunities Along with Benefits of InfoTech Acquisition Position Company for Growth
- Quarter focused on product and business development will yield significant benefits over the next few years
- Pharmacy vertical –
- Caregiver solution set for launch
- Medication Adherence solution moving into testing phase
- In addition to myVitals for Covid related use, myVitals Scan technology being developed for other use cases
- InfoTech acquisition closed April 6 – Carebook now serving over 1 million users
- Strong potential for growth and synergies resulting from InfoTech acquisition
- Expanded leadership team now in place to spearhead global growth
MONTREAL, May 20, 2021 /CNW Telbec/ - Carebook Technologies Inc. ("Carebook" or the "Company") (TSXV: CRBK) (OTCPK: CRBKF) (XETR: PMM1), a leading Canadian digital health company offering innovative digital health and virtual care solutions for pharmacies, employers and insurers, today announced results for its first quarter ended March 31, 2021.
"Our first quarter was a very productive quarter for us as we focused on product and business development, two areas that will set our path to strong and sustainable growth going forward." commented Pascale Audette, CEO of Carebook. "We have identified significant opportunities for growth within the global pharmacy vertical as well as with our innovative scan technology. With the successful closing of our acquisition of InfoTech last month, our global footprint has increased substantially, and we are now strategically positioned to optimize our offerings to a much larger population. As we work even more closely with the InfoTech team, we are discovering additional opportunities for expansion. InfoTech's Wellness Checkpoint platform is highly regarded in the industry and is being used by some of the largest and most well-respected companies in the world. The opportunities to build on their over 20-year track record of success combined with Carebook's expertise in creating highly engaging, customer-centric digital solutions positions us for unprecedented growth over the coming years."
Highlights:
- Pharmacy Vertical New Product Development:
- Caregiver Solution set for launch
- Carebook has been working on new features and experiences to enable the ability for caregivers to manage prescriptions, ensure adherence and log important health information for individuals they assist. The Carebook Pharmacy App will enable caregivers to fill, refill and renew prescriptions, log and track health information, view metrics and encourage adherence. The caregiver component will be offered as part of the Carebook Pharmacy Solution and is set for launch over the next few months.
- Medication Adherence Solution moves into testing phase
- It is estimated that among patients with chronic illness, approximately 50% do not take medications as prescribed. The cost of non-adherence per person has ranged from $5,000 to $52,000 (2015 US$)1. With a patient-centered, pharmacist-friendly approach, Carebook is evolving its digital solution to improve medication adherence. It targets the most common barriers to adherence including low trust in the efficacy or necessity of the medication, forgetfulness, side effects, and more. The Medication Adherence Solution will offer users the ability to set reminders, track their i) symptoms, ii) side effects and iii) adherence score, as well as to share results with their healthcare team. The Medication Adherence Solution is moving into the testing phase and will be offered as part of Carebook's Pharmacy Solution in late 2021.
- InfoTech Inc. (Employer Vertical) Acquisition: On April 6, 2021, Carebook announced the closing of its acquisition of InfoTech Inc., doing business as Wellness Checkpoint® ("InfoTech"). This transaction marked Carebook's initial entry into the C$37 billion employer market2. InfoTech is a recognized global leader in health and productivity risk management. InfoTech's proprietary software platform Wellness Checkpoint, IP and metrics are supported by advanced analytics and focus on employees' physical health, mental health and well-being, and their impact on work and business effectiveness. Their clients are a mix of direct clients, typically multinational companies, including several in the Fortune 500 and partners/resellers who incorporate the product into their corporate and consumer offerings. InfoTech's significant international client base will contribute to the growth of Carebook's global footprint. The total purchase price for the acquisition was C$14 million on a cash free and debt free basis, consisting of a combination of C$9 million in cash and C$5 million in common shares of Carebook at a price of C$1.21 per share. Over the past 6 weeks since the acquisition closing, Carebook has been working closely with the InfoTech team to optimize potential growth opportunities for the combined companies focusing on InfoTech's global footprint and exceptionally strong relationship with its customer base and Carebook's highly engaging, customer-centric digital solutions.
- myVitals Scan Technology – Developing New Applications: In response to the evolving COVID-19 pandemic, Carebook developed an easy-to-use, accessible smartphone app known as "Carebook myVitals" that uses cutting-edge technology (remote photoplethysmography) through a smartphone to provide a powerful app that measures heart rate and oxygen saturation alongside a symptoms checker. In addition to the initial myVitals Covid related uses, Carebook is now developing additional applications for its scanning technology that can be marketed for other use cases. This includes prototyping and validating use cases for the pharmacy vertical by offering pharmacists the ability to capture patient's vital signs such as tracking blood pressure, heart rate and oxygen saturation when optimizing medications for high blood pressure and other chronic diseases.
- Leadership Team Ready to Take on the World: During the first quarter, Carebook put in place a newly structured leadership team to better position the company for success on a global scale:
- Limor Elbaz, originally hired as GM for the United States was promoted to the role of Chief Revenue Officer (CRO) in February 2021.
- Howard Fried, hired in December 2020 as Carebook's new VP of Sales, is now leading Carebook's sales efforts in the pharmacy business.
- Mathieu Lampron was promoted to Chief Product Officer from VP Product in February 2021.
- Novus Health (Insurance Vertical) Acquisition Update: On November 19, 2020, Carebook announced that it had entered into an LOI to acquire Health Care Services International Inc., doing business as Novus Health. Novus Health is one of Canada's leading providers of health navigation programs and integrated health and wellness management solutions for insurers, financial institutions, and employers. Carebook continues its due diligence related to the transaction. There is no assurance that a definitive agreement in respect of this transaction will materialize.
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1. |
Source: Cutler RL, Fernandez-Llimos F, Frommer M, et al 2015 |
2. |
Source: Grand View Research, Corporate Wellness Market Size, February 2020 |
Selected Unaudited Financial Highlights:
Please see SEDAR (www.sedar.com) for complete copies of Carebook's consolidated financial statements and MD&A for the quarter ended March 31, 2021. All figures below are in C$000's.
Revenue for the three months ended March 31, 2021 was $863, compared to $965 for the three months ended March 31, 2020, a decrease of $102 or 10.6%. For these periods, Carebook's total revenue was driven almost entirely by the pharmacy vertical. The decrease in revenue is attributable to a change in planned revenue commitments in March of 2020 and 2021 related to the development work for a key customer.
Total comprehensive loss was $1,880 for the three months ended March 31, 2021, compared to a loss of $818 for the three months ended March 31, 2020, an incremental loss of $1,061, or 129.7%. The variance between periods is attributable to labour and employee benefits as the Company increased its staffing levels in pursuit of and in preparation for revenue growth in future periods, which also included increases in sales and marketing related spending. The company also recorded stock-based compensation in the first quarter of 2021, which contributed to the incremental loss year over year. Finally, the company incurred non-routine expenses related to financing and M&A activities.
First Quarter 2021 Results Conference Call:
Dial-in information will be provided to participants following pre-registration.
Please note that upon registering, each participant will be provided with call details and a registrant ID (Reminders will also be sent to registered participants via email.)
DATE: |
Thursday, May 20, 2021 |
TIME: |
8:30 a.m. Eastern Time |
CALL REGISTRATION: |
|
WEBCAST: |
https://produceredition.webcasts.com/starthere.jsp?ei=1462572&tp_key=d8e8364d04 |
REPLAY: |
1-416-849-0833 or Toll Free 1-855-859-2056 Available until 11:59 p.m. ET, Thursday, May 27, 2021 |
PHONE REPLAY ENTRY CODE: |
9538665 |
WEBCAST REPLAY: |
https://produceredition.webcasts.com/starthere.jsp?ei=1462572&tp_key=d8e8364d04 Available for 90 days following the conference call |
REFERENCE NUMBER: |
9538665 |
About Carebook Technologies
Our core is science. Our solutions are accessible. Our mission is to empower people.
Built on a powerful health platform, Carebook creates highly engaging, customer-centric digital solutions for pharmacies, insurance providers, individuals, and employers. Based in Montreal and led by a world-class team and Board with extensive global business and healthcare industry experience, Carebook's core is science and technology, its philosophy is people-first, and its goal is accessible, connected health for everyone. On October 6, 2020, Carebook's shares were listed on the TSXV under the symbol "CRBK" and the company's shares also trade on the OTC Markets under the symbol CRBKF and Frankfurt Stock Exchange under the symbol PMM1.
Notice regarding forward-looking statements:
This release includes forward-looking information within the meaning of Canadian securities laws regarding Carebook, its subsidiaries and their business, including regarding the potential synergies from the InfoTech acquisition, the potential growth prospects of Carebook and its subsidiaries, Carebook's products and technologies and the potential Novus Health acquisition. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements are based on the current expectations of the management of Carebook and are based on assumptions and subject to risks and uncertainties. Although the management of Carebook believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this release may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the Company, including risks regarding the failure to obtain regulatory approvals, economic factors, management's ability to manage and to operate the business of Carebook, management's ability to successfully integrate the Company's contemplated and completed acquisitions and to realize the synergies of such acquisitions, management's ability to successfully complete product studies, the equity markets generally and risks associated with growth and competition, as well as the risk factors identified in the Company's management's discussion and analysis for the year ended December 31, 2020 and described under the heading "Item 21 – Risk Factors" in the Listing Application of the Company dated September 28, 2020, each of which can be found on SEDAR under the Company's profile at www.sedar.com. Although Carebook has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on any forward-looking statements or information. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Carebook does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. In addition, the current situation and future developments with respect to the COVID-19 pandemic could cause certain of the assumptions and information set forth herein or the fact that on which such assumptions are based to differ materially from previous expectations including in respect of demand for our products, supply chain and availability of materials, mobility and shipping of materials and or products, access to debt and equity capital and other factors.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Carebook Technologies Inc.
Carebook Investor Relations Contact: Jeffrey Kadanoff, CFO, Email: [email protected], Telephone: (514) 502-1135; Carebook Media Contact: Nick Clements, VP, Marketing, Email: [email protected], Telephone: (250) 575-2360
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